CA94300 - Structures and buildings allowance (SBA): excluded expenditure: prevention of double relief

CAA01/S270BI

CAA01/S7 specifically stops expenditure qualifying for more than one type of capital allowance CA16000. Therefore, expenditure that has qualified for the SBA does not qualify for any other type of capital allowance.

Once a claim to the SBA has been made on qualifying expenditure, the amount of relief on the building is fixed for the 33 1/3 year qualifying period, which commences when the building first came into use, provided that the expenditure was correctly attributed to the cost of the building. The costs therefore cannot be re-categorised by the taxpayer, or any subsequent holder of the relevant interest, at a later date.

If, as a result of HMRC enquiry, it is found that expenditure has been incorrectly classified, it is likely a claim for allowances with the correct classification will be permitted, in line with the extended time limits in FA98/SCH18/PARA82(1)(b).

Plant and machinery priority rule

Usually it is up to the taxpayer to choose which allowance to claim where the expenditure may qualify for more than one capital allowance. However, SBA includes a priority rule that excludes capital expenditure on the provision of plant or machinery from being qualifying expenditure for SBA, whether plant and machinery allowances have been claimed or not.